金融英语

Section Three (10%)

Directions：Read the following passages, and determine whether the sentences are “Right” o r “Wrong”. If there is not enough information to answer “Right” or “Wrong”, choose “D oesn’t say”. Then mark the corresponding letter on the ANSWER SHEET by drawing a single li ne through the center.

Passage 1

Liquidity is a measure of how quickly an item may be converted to cash. Therefore, cash is t he most liquid asset. Account receivable is a relatively liquid asset because the business e xpects to collect the amount in cash in the near future. Supplies are less liquid than accou

nts receivable. Users of financial statements are interested in liquidity because business d ifficulties often arise owing to shortage of cash. How quickly can the business convert an a sset to cash and pay a debt? How soon must a liability be paid? These are questions of liqui dity.

51. Long-term assets are all assets other than current assets. A right B wrong C Doesn’t say

52. Supplies are less liquid than accounts receivable, and furniture and buildings are even less so.

A Right

B Wrong

C Doesn’t

53. People are interested in liabilities on the balance sheet because it is relatively liqui d.

A Right

B wrong

C Doesn’t say

Passage 2

Whereas the money markets provide very short-term loans, the capital market takes account of medium and long-term loans. It serves the needs of industry and commerce, government and lo cal authorities. Private sector firms borrow their working capital (current assets minus cur rent liabilities) from the money market, which used to be mainly via commercial banks; the r ole of banks as middlemen has now diminished, even for the working capital requirements. Pri vate sector firms raise their fixed capital by the issue of shares or commercial paper bonds. Government and local authorities borrow medium and long-term capital by issuing gilt-edged stocks and bands. The main market place for lending and borrowing medium and long-term capit al in the UK is the Stock Exchange in London.

54. An industrial corporate can meet its financial needs by seeking funds from the capital m arkets.

A Right

B Wrong

C Doesn’t say

55. Nowadays a private business usually obtains its working capital through a commercial ban k.

A Right

B Wrong

C Doesn’t say

56. In the UK commercial banks often raise funds by issuing bands and stocks. A Right B Wrong C Doesn’t say

Passage 3

A commercial bank shall formulate its business rules, establish and improve its business man agement, the system of cash control and its security system in accordance with the stipulati ons of the People’s Bank of China.

A commercial bank shall establish and improve its systems of examining and checking deposits, loans settlements and bad and doubtful accounts. The PBC can exercise examination of a comm ercial bank at any time in accordance with the relevant provisions. The personnel in charge

of the examination and supervision should produce their legitimate at the time of conducting examination and supervision.

A commercial bank shall provide financial financial accounting information, business contrac ts and other information about its business and management at the request of the People’s B ank of China.

A commercial bank is subject to the audit control by the auditing authorities in accordance

with the audit law and regulations.

57. The PBC can exercise examination of a commercial bank at any time. A Right B Wrong C Doesn’t say

58. A commercial bank shall establish and improve its system of internal control according t o law.

A Right

B Wrong

C Doesn’t say

59. A member staff of the PBC should present his legitimate certificate for on-site examinat ion.

A Right

B Wrong

C Doesn’t say

60. The auditing authorities can not exercise the audit control over a commercial bank. A Right B Wrong C Doesn’t say

Section Four (20%)

Direction ：There are 4 passages in this section. Each passage is followed by some questions or unfinished statements. For each of them there are four choices marked A, B, C and D. You should choose the best choice and mark the corresponding letter on the ANSWER SHEET by drawi ng a single line through the center.

Passage 1

Qualified Endorsement: when the words “without recourse” or words with similar meaning are used part of the endorsement, such endorsement is referred to as qualified endorsement. The purpose of this type of endorsement is to limit the endorser’s liability. The qualified end orsee,however, may look to all other parties prior to the qualified endorser. Under the UCP, the term “signature” also includes marks and thumbprints and printed, typed, or stamped s ignatures are acceptable in addition to written ones. This rule also applies to endorsements. In the United States, the endorsement on an instrument need not necessarily be applied by t

he previous holder. Banks frequently provide this by placing a rubber-stamped endorsement on deposited check, typically using words as “credited to the account of within named payee” and guaranting the absence of the payee’s persona; signature and endorsement.

61. Qualified endorsement is one .

A. only with “without recourse” on it, words with similar meaning are not considered as qu alified endorsement.

B. where the holder merely writes his signature on the bank of the instrument and thereafter it becomes payable to the bearer.

C. with “without recorse” or words with similar meaning as part of the endorsement.

D. which prohibits the further negotiation of the instrument or which expresses that it is a mere authority to deal with instrument as thereby directed.

62. Qualified endorsement is used .

A. when the endorser wants to pass the full title to the endorsee

B. to inform the importer’s bank to negotiate

C. when the endorser wants to strengthen the liability of the endorsee

D. to limit the endorser’s liability

63. According to the UCP, the term “signature” includes .

A. marks and thumbprints, and printed, typed, or stamped signatures are acceptable in additi on to written ones

B. marks and thumbprints, and printed, typed, or stamped signatures are not acceptable in ad dition to written ones

C. marks and thumprints, but printed, typed, or stamped signatures are not acceptable

D. marks and thumbprints only

64. The qualified endorsee may look to all other parties . A. prior to the qualified endorser

B. prior to the qualified endorsee C. prior to the immediate endorser D. prior to the immediate endorsee

65. Endorsement can be acceptable .

A. only when it is signed personally by the previous holder

B. if it is signed, stamped or marked

C. only when there is a rubber-stamped signature on it

D. if there are thumbprints on it

Paggage2

Whether sending or receiving payments across borders, banks often charge too much or take to o long-or both. One study last year found that European banks overcharged for over a third o f urgent transfers. Thankfully, new payments networks are starting to offer quick, reliable and more competitively priced service. Given time, these could pose a threat to traditional bilateral(or correspondent) agreements between individual banks and to the Society for World wide Interbank Financial Telecommunication (SWIFT), the global network that processes most l arge international payments.

One upstart gaining credibility is the Inter-bank On-line System(IBOS), which was founded in

1997 by Britain’s Royal Bank of Scotland and Spain’s Banco Santander.

What is the system’s attraction? The answer is that instead of taking many days and bits of paper, the form of correspondent banking, account-account payment in IBOS can be completed o pening an expensive international branch network. The system’s executives like to refer to its members-now 11 banks from nine countries-as a single “virtual bank”. Charles Mallis of Chase, which is merging with Chemical, a big American rival, says that this ability to “sha re” branches was a big attraction to the bank, even though it already has the world’s larg est correspondent network.

IBOS bills themselves act as more than simply a quick payment service. It wants to develop i nto a platform for all sorts of cash-management products, particularly for multinationals. S ean Verity, its chief executive, says that there are also plans to license the system’s tec hnology, so that banks anywhere can use it as a platform for their own independent payment a ssociations. And its members think that its advanced technology could help them to speed up commerce-payments using smart cards, electronic cash and so on.

IBOS claims that it is not a direct threat to SWIFT because the two are fundamentally differ ent in several ways. For instance, the former is a decentralized cash management technology which links different banks’ branches directly, whereas all traffic for its bigger rival mu st pass through a central hub in Brussels.

66.International money transfer is often troubled with .

A. slow payment

B. expensive charges

C. both A and B

D. none of the above

67. As a newly-founded payment system, IBOS is welcomed mainly for its . A. high-tech platform

B. cash-management technology C. large correspondent network D. speedy transfer of payment

68. Another reason why some banks joined IBOS is that . A. they can share their branches

B. they can share their correspondents

C. branches of different banks can transfer money directly

D. all of the above

69. According to the passage, which statement is wrong?

A. IBOS may help to speed up commerce-payment using smart cards, electronic cash and so on. B. IBOS is a payment system for fast and cheap money transfer.

C. IBOS ienables the member banks to create better cash management products than smart cards, electronic cash and so on.

D. With IBOS’ technology, the bank’s money transfer can be more globalized.

70. One of the main differences between IBOS and SWIFT is that_ .

A. SWIFT is a telecommunication system for global banking, while IBOS is merely a payment sy stem

B. The business volume handled by SWIFT is much bigger than that of IBOS C. To use IBOS makes a bank more decentralized

D. All information processed by SWIFT has to go through its center, while under IBOS system two end-users can contact each other directly

Passage 3

Most commercial letters of credit are documentary, meaning that certain documents must be in cluded with any drafts drawn under the terms of the credit. Documents required usually inclu de an order bill of lading, a commercial invoice, and any of the following: consular invoice, insurance certificate or policy, certificate of origin, weight list, packing list.

Letters of credit without the requirement for presentation of shipping documents or commerci al documents are called clean credits, and are similar to, although not legally identical wi th unconditional first demand guarantees. These credits are extremely flexible and may be us ed in an almost unlimited variety of situations, from construction bond to the finance of ma rgin requirements on future markets. Two kinds of clean letters of credit which are relative of the documentary letters of credit are of interest.

The first is the standby letter of credit, in which the issuing bank undertakes to pay if th e applicant does not carry out his obligations. Documents normally called for are evidences of the underlying transaction, such as non-negotiable copies of bills of lading , or third p arty’s certificate certifying the non-performance of an obligation of the applicant, or the beneficiary’s certificate of non-payment by the applicant. The second is the indemnity for minor discrepancies in the documents given to the shipping company so that issuing bank may make payment or the shipping company may release goods to the applicant.

71. According to the passage, a documentary letter of credit is one which .

A. includes any drafts

B. includes drafts accompanied by invoices, bills of lading and other documents

C. is accompanied by invoices, bills of lading and other documents

D. is accompanied by drafts as well as the insurance policy and commercial invoices

72. A clean credit is one which . A. calls for no presentation of it

B. is used instead of first demand guarantee

C. is used without presentation of any documents

D. is the same as an unconditional first demand guarantee

73. Under a standby letter of credit, .

A. evidence of the underlying transaction should be field first

B. the applicant may be exempted from any liabilities

C. the issuing bank has to pay the beneficiary

D. the issuing bank should pay when the applicant fails to fulfill his obligations

74. The indemnity may be .

A. used whenever there are discrepancies in the documents

B. presented when the shipping company intends to release the goods to the applicant

C. presented to the issuing bank of the L/C under which there are unimportant discrepancies in the documents

D. used in lieu of shipping documents

75.Standby letters of credit are relatives of documentary letters of credit because_ _. A. they are very similar to ordinary letters of credit in operation

B. the issuing banks undertake to pay

C. they are normally accompanied by evidences of transactions such as non-negotiable copies of B/L or other documents

D. call for all kinds of normal documents

Passage 4

Acceptance of a bill of exchange is an unconditional undertaking to pay the bill on maturity. The drawee should not, therefore, when accepting the bill, impose any conditions on payment. Acceptances citing for instance:(a) lesser amount (b) payable at a different date are referr ed to as “unqualified acceptances” and would not be acceptable to the remitting bank.

The bill may be accepted payable at a place other than the acceptor’s address, normally at his bank, viz. “accepted payable at Barclays Bank plc…” This practice should be encourage d as the procedure for obtaining payment at maturity is greatly simplified; the bill needs o nly to be presented at the bank counters for payment.

The presenting bank is responsible for seeing that the form of the acceptance of a bill of e xchange appears to be complete and correct, but is not responsible for the genuieness of any signature or for the authority of any signatory to sign the acceptance.

However, when the drawee is a customer, good banking practice dictates that the signature mu st be checked against the mandate.

Strict control must be maintained over an accepted bill, which must not be presented for pay ment at maturity through the post.

A bill of exchange is dishonoured when a sight draft is unpaid on presentation or when a ten or draft is unaccepted on presentation or unpaid at maturity.

When an inward collection is dishonored the presenting bank must examine the collection orde r to see whether the bill is to be protested. Protesting a bill provides legal evidence of d ishonor acceptable to a court of law.

If protest is to be carried out, a Notary Public will personally call upon the drawee/accept or and demand payment or acceptance. If the payment/acceptance is not forthcoming, the Norta ry Public will draw up a deed of Protest that will give the reasons stated for dishonor. A b ill should be protested within one working day of dishonor, otherwise under the Bills of Exc hange Act 1882(s.51) all signatories are freed from liability on that bill.

When a Notary Public is not available, a member of the bank staff can make a formal protest. Two ratepayers resident in the area of the drawee must witness the formal document. This is a valid form of Protest.

76. Acceptance of bill of exchange is . A. a promise C. an order

B. a promise under some conditions D. a payment

77. When a sight bill of exchange is unpaid, it is . A. unaccepted C.dishonored

B.honored D.accepted

78.when an inward collection is dishonored, the bank must make sure whether the bill is to be protested.

A. remitting C. confirming

B. collecting D. reimbursing

79. Protesting is expensive and must be done within one working day of . A. unacceptance C. payment

B. dishonor D. collection

80. A member of the bank staff can make a protest. A. formal C. normal

B. valid form D. formal and valid

Part Three Writing

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